There is a significantdownsiderisk for oil prices if economic and financial market concerns become more widespread or take hold, regardless of the China oil support line.
Goldman Sachs analyst James Covello this morning cut his rating on Applied Materials to Sell from Neutral, while reducing his stance on Lam Research to Neutral from Buy, asserting that a recent rally in semiconductor equipment shares has created significantdownsiderisk for the group.
The downsiderisk is if inflation becomes overheated in these regions or if there is a significant slowdown in advanced nations that will hurt the export-driven growth developing regions have enjoyed.